Actually I'm thinking Jeff came across an issue with ACAD. Inserting a block using the dialog box w/ the Explode checked, the block is invisible when trying to place it in a drawing (before it is placed, therefore before it is exploded).
Likewise, inserting a block using the command line (.-insert) and specifying the name (*BlockName) also gives the user an invisible block until placed in the drawing.
But if you place a block in a drawing w/out the Explode box checked, you can see the block, therefore know where to place it.